The Minister of State for Finance, Shri S.S. Palanimanickam, in written reply to a question raised in Lok Sabha today, said that the Government has taken steps to operationalise 8 new Income Tax Overseas Units (ITOUs) in France, Germany, Netherlands, Cyprus, U.S.A, U.K., U.A.E. and Japan in the next financial year
Two ITOUs have already been operationalised in Singapore & Mauritius in F.Y. 2010-2011. These Units are not engaged in tax collection process directly.
The mandate of ITOUs is to assist Indian Competent authorities, under the Double Taxation Avoidance Agreements (DTAAs)/ Tax Information Exchange Agreements (TIEAs), in its various works as well as to provide clarity on Indian taxation law in order to promote investment in India.
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(Release ID :70855) |
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Income Tax Overseas Units expanding abroad to assist treaty compliance and clarify Indian tax rules to promote investment. The Government will operationalise eight new Income Tax Overseas Units in the next fiscal; two ITOUs are already functional in Singapore and Mauritius. The ITOUs will not undertake direct tax collection. Their mandate is to assist Indian competent authorities under Double Taxation Avoidance Agreements and Tax Information Exchange Agreements by facilitating information exchange, treaty administration, and providing clarity on Indian taxation law to promote investment.
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